In a positive development for the home building industry and housing affordability, the United States and China announced an agreement to suspend a proposed Jan. 1 tariff boost to 25% on $200 billion worth of Chinese imports — including including $10 billion of goods used by the home building industry — until March 2, 2019.

Earlier this year, President Trump imposed a 10% tariff on these goods, which represents a $1 billion tax increase on residential construction. This 10% tariff remains in effect while negotiations continue with China.

The agreement, brokered at the recent G-20 summit in Buenos Aires, to allow the U.S. and China to continue trade negotiations while they work to resolve their differences. However, if an agreement is not reached within 90 days, the tariff on Chinese goods will jump from 10% to 25%, which would be equivalent to a $2.5 billion tax on housing.

NAHB has urged the administration to resolve this dispute quickly in a way that won’t hurt American consumers or businesses.